Holly Energy Partners, L.P. Announces Pricing of $100 Million of Senior Notes Due 2024
September 19 2017 - 4:48PM
Business Wire
Holly Energy Partners, L.P. (NYSE: HEP) (the “Partnership”)
announced today that it and its wholly owned subsidiary, Holly
Energy Finance Corp. (together with the Partnership, the
“Issuers”), have finalized the terms of their previously announced
tack-on offering of $100 million in aggregate principal amount of
6% senior notes due 2024 (the “Notes”) in a private placement under
Rule 144A and Regulation S of the Securities Act of 1933, as
amended (the “Securities Act”) to eligible purchasers. The Notes
offered are an additional issuance of the Partnership’s outstanding
6% Senior Notes due 2024, initially issued in an aggregate
principal amount of $400.0 million on July 19, 2016 (the “Existing
Notes”). The Notes will be issued at a price equal to 103.25% of
the principal amount, plus accrued interest from August 1, 2017.
The Notes will be issued under the same indenture as the Existing
Notes and are part of the same series. Additionally, like the
Existing Notes, the Notes will initially be fully and
unconditionally guaranteed on a senior unsecured basis by the
Partnership’s existing wholly owned domestic subsidiaries (other
than Holly Energy Finance Corp.). The Partnership intends to use
the net proceeds from the offering to repay indebtedness under its
revolving credit agreement which amounts may be reborrowed to
partially finance the Partnership’s proposed transaction with
Plains All American Pipeline, L.P. to acquire its 50% interest in
Frontier Aspen LLC and its 75% interest in SLC Pipeline LLC. The
offering is expected to close on September 22, 2017, subject to
customary closing conditions.
The Notes and the related guarantees have not been registered
under the Securities Act, or any state securities laws, and unless
so registered, may not be offered or sold in the United States
except pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act and
applicable state securities laws. The Issuers plan to offer and
sell the Notes only to qualified institutional buyers pursuant to
Rule 144A under the Securities Act and to persons outside the
United States pursuant to Regulation S under the Securities
Act.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the securities described herein,
nor shall there be any sale of these securities in any state or
jurisdiction in which such an offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
About Holly Energy Partners, L.P.
Holly Energy Partners, L.P., headquartered in Dallas, Texas,
provides petroleum product and crude oil transportation,
terminalling, storage and throughput services to the petroleum
industry, including HollyFrontier Corporation subsidiaries. The
Partnership, through its subsidiaries and joint ventures, owns
and/or operates petroleum product and crude gathering pipelines,
tankage and terminals in Texas, New Mexico, Arizona, Washington,
Idaho, Oklahoma, Utah, Nevada, Wyoming and Kansas as well as
refinery processing units in Kansas and Utah.
The statements in this press release relating to matters that
are not historical facts are “forward-looking statements” within
the meaning of the federal securities laws. These statements are
based on our beliefs and assumptions and those of our general
partner using currently available information and expectations as
of the date hereof, are not guarantees of future performance and
involve certain risks and uncertainties. Although we and our
general partner believe that such expectations reflected in such
forward-looking statements are reasonable, neither we nor our
general partner can give assurance that our expectations will prove
to be correct. Therefore, actual outcomes and results could
materially differ from what is expressed, implied or forecast in
these statements. Any differences could be caused by a number of
factors including, but not limited to:
• risks and uncertainties with respect to the actual quantities
of petroleum products and crude oil shipped on our pipelines and/or
terminalled, stored and throughput in our terminals;
• the economic viability of HollyFrontier Corporation, Alon USA,
Inc. and our other customers;
• the demand for refined petroleum products in markets we
serve;
• our ability to purchase and integrate future acquired
operations;
• our ability to complete previously announced or contemplated
acquisitions, including the pending transactions with Plains;
• the availability and cost of additional debt and equity
financing;
• the possibility of reductions in production or shutdowns at
refineries utilizing our pipeline and terminal facilities;
• the effects of current and future government regulations and
policies;
• our operational efficiency in carrying out routine operations
and capital construction projects;
• the possibility of terrorist attacks and the consequences of
any such attacks;
• general economic conditions; and
• other financial, operational and legal risks and uncertainties
detailed from time to time in our Securities and Exchange
Commission filings.
The forward-looking statements speak only as of the date made
and, other than as required by law, we undertake no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20170919006643/en/
Holly Energy Partners, L.P.Craig
Biery, 214-954-6511Director, Investor RelationsorJared
Harding, 214-954-6511Investor Relations
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